Explainer: Who Are the Israeli Settlers Sanctioned by the U.S. and What Does Their Targeting Mean? - Israel News - Haaretz.com
On Sunday, the Israeli Leumi bank blocked the account of Jewish settler Yinon Levi, who was one of four settlers that the Biden administration added to its sanctions list last week over his attacks against West Bank Palestinians.
This was the first response to the U.S. sanctions by an Israeli institution. It prompted harsh attacks from far-right Israeli organizations.
On Monday, the Israeli Postal Bank closed the account of another settler on the list, David Chai Chasdai, a well-known right-wing extremist whom Israel once put into administration detention, or detention without trial, due to the risk he posed.
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Q: Who was blocked and why?
Levi was sanctioned after he was found to be the primary reason that some Palestinians had abandoned four communities located near the outpost where he lives, called Meitarim Farm. They allege that he, accompanied by soldiers, had intimidated and attacked them, prompting the decision to leave at least one of the four villages.
In its announcement of the sanctions decision, the U.S. State Department said that Levi "regularly led groups of settlers from the Meitarim Farm outpost that assaulted Palestinian and Bedouin civilians, threatened them with additional violence if they did not leave their homes, burned their fields, and destroyed their property."
Palestinian village of al-Rakiz, after settlers attacked.Credit: Hadas Parush
Chasdai was arrested following riots in the West Bank town of Hawara last February, during which Palestinian homes were vandalized and burned down and one resident of a neighboring Palestinian village was killed. Chasdai was released shortly after his arrest, but was later put under administrative detention for three months. During that time, National Security Minister Itamar Ben-Gvir met with his parents.
Chasdai has also been convicted in the past of assaulting a Palestinian taxi driver, threatening a policema officer and planning to use incendiaries.
Q: How did the Israeli government respond?
The government expressed disapproval towards the move by the U.S. with Prime Minister Benjamin Netanyahu saying in a statement that "The overwhelming majority of residents in Judea and Samaria are law-abiding citizens, many of whom are currently fighting as conscripts and reservists to defend Israel. Israel acts against all Israelis who break the law, everywhere; therefore, exceptional measures are unnecessary."
Communications Minister Shlomo Karhi said that blocking someone's bank account "because of an arbitrary American order is intolerable. Such abuse of an Israeli citizen, with no due process, is something we must not lend a hand to."
Referring specifically to the Postal Bank and a Supreme Court decision barring the government from firing its director, he added, "Very regrettably, as Israelis have learned, the post office's level of service is beneath contempt, yet the court blocked the ministers' power over it. I've referred this issue to legal review, and if I am found to have the power, I will immediately order the account unblocked."
Finance Minister Bezalel Smotrich added that he was in contact with the Bank of Israel's supervisor of banks regarding ways to circumvent the sanctions.
Israeli Finance Minister Bezalel SmotrichCredit: Olivier Fitoussi
Q: What did the Bank of Israel say?
The Bank of Israel backed the decision to block the accounts. "Banking corporations by virtue of their international activity must establish policies and procedures for the use of international sanctions lists and foreign countries' national sanctions lists, and for engaging or carrying out actions with entities declared on such lists," it said in a statement.
"Overriding such sanctions regimes can expose banking corporations to significant risks, including compliance risks, money laundering risks and terrorism financing, legal risks and reputation risks.
"Maintaining the proper management and regular activity of Israel's banking corporations is necessary for maintaining the regular activity of the economy as a whole, maintaining a proper relationship with the global economy, and finally for the proper functioning of the Israeli economy," the statement added.
U.S. National Security Council Spokesman John Kirby in February.Credit: Evelyn Hockstein / Reuters
Q: What are the American sanctions?
The presidential order signed last week allows sanctions to be imposed on either private individuals or government officials who were involved in or enabled violence against Palestinians or intimidation aimed at causing them to leave their homes. Under this order, sanctioned individuals will have their U.S. assets frozen and be barred from entering the United States.
After the order was issued, the U.S. Treasury Department issued instructions to financial institutions on "red flags" that might indicate that money passing through them may be used for settler violence against Palestinians in the West Bank.
These include payments to organizations or groups that have been linked to violence in the West Bank or have a member linked to such violence, so it could go well beyond money sent to the four named settlers.
Q: Are banks required to obey the American sanctions? And what will happen if they don't?
Banks have no choice but to obey the sanctions unless the Israeli legal system rules otherwise. If it doesn't, they could face criminal prosecution in the U.S. Whenever the Americans impose sanctions, the U.S. Office of Foreign Assets Control supplies all banks with a list of the sanctioned individuals.
Q: Can a sanctioned individual do anything – for instance, go to court?
Yes, he can sue, and the courts could theoretically order the banks to leave his account open.
Q: What can we expect down the road? Are other settlers in the U.S. government's sights?
It's not clear whether the Americans plan to add anyone else to their sanctions list, or if so, whom. But the four added last week aren't the only ones convicted of nationalist crimes in recent years, and they are far from being the only ones well known to Israel's defense establishment. So if the Americans do want to expand the list, they can do so.
To a large extent, the sanctions serve as a warning to Israeli law enforcement agencies, which for years have failed either to put settlers on trial or to prevent violence against Palestinians. For instance, to this day, not one person has been indicted over the Hawara riot.
The West Bank town of Hawara.Credit: Itai Ron
Though the presidential order would allow sanctions to be imposed on Israeli government officials, U.S. National Security Council Spokesman John Kirby said that at this stage Washington has no intention of doing so.
Q: How is money raised for West Bank outposts?
In recent years, settlers have begun raising money from Israelis through payment apps like Bank Hapoalim's Bit or Israel Discount Bank's Paybox.
Money is also raised in America from groups comprised of evangelical Christians, and some settler organizations send individuals to fundraise in other countries as well. But the sanctions may impact this overseas fundraising.
Q: How unusual is it for the United States to impose sanctions on ordinary people from other countries?
Usually, the Americans sanction businesspeople, like Israeli tycoons Dan Gertler and Israel Ziv, but not private individuals like the four settlers.
Q: What are the long-term implications of the sanctions for settlers? Does this open the door to sanctions being imposed on a wider group of Israelis down the road?
At this stage, it's hard to predict where the sanctions will go. It also depends a great deal on the government's behavior and whether it tries to solve the problem through smart diplomacy, or whether extremists Smotrich and Ben-Gvir take advantage of the decision to clash with the Americans and thereby earn points from their base.